By Alicia Maher
On Saturday, a CNBC report claims that Twitter would be adopting the poison pill approach to Tesla CEO’s buyout offer of their Twitter shares. The Twitter limited duration policy states that “any individual or group of persons will be free to increase their Twitter shares at a discount in the event that another person or group of persons own up to 15% of Twitter’s common shares without the Twitter board’s approval.”
After receiving Elon Musk’s buyout offer request, the board disclosed that it would consider the offer in line with the interest of the shareholders. However, the board has come out to say it would be adopting the poison pill approach following a unanimous vote on the matter, and the vote would be upheld for the next year when the board will revisit the decision.
Rejecting Musk’s Offer Stylishly
Even though the Twitter board hasn’t outrightly rejected Musk’s offer, its poison pill approach indicates that the shareholders don’t want him to own the company 100%. The board’s decision can also be interpreted to mean that they want to maximize the situation such that it is hugely beneficial for the shareholders.
An official statement from Twitter reads, “the rights plan will lower the chances for any person or group to amass a controlling percentage of Twitter shares via the open market unless they pay shareholders a premium amount as approved by the board. Also, the board must be given enough time to make the right call for the best benefit of shareholders.”
The board’s decision comes after Musk recently acquired nearly 9.2% of Twitter shares to become its highest shareholder. Despite the board offering him an executive role, Musk declined their request. Thus, when he revealed his plan and proposal to own Twitter completely, many believed that this was his plan when he made his previous share acquisition.
Will Musk Eventually Own Twitter Completely?
The Twitter board has also agreed that it won’t mind Musk relinquishing his Twitter shares if the board’s decision doesn’t sit well with him. Twitter may have adopted an approach that will prevent Musk or any other person with such intentions from having controlling shares on Twitter. However, the richest man in the world right now may still find other means to make his dream a reality. Musk was present at a Vancouver tech event on April 14 and was interviewed by CNBC correspondent, Dave Lee.
During the interview, Musk affirmed that even if Twitter declines his proposal, he already has some alternate means of making his dream a reality. His dream is to own a social site where there won’t be restrictions on the right of free expression. While the Tesla CEO didn’t disclose details of his new plans, it shows that the man is persistent in owning Twitter no matter what it takes or creating his own ‘Twitter.’
Already, some tech developers are willing to offer Musk the help he needs in case he wants to create his own Twitter-like platform. One of such developers is Cardano’s creator, Charles Hoskinson.